Home -> Law Blog Directory -> Religion & Law Blogs -> Religion Clause

Religion & Law

: Religion Clause

Final Defendants Sentenced In Tax Fraud Scheme By Hasidic Rabbi

By Howard M. Friedman

According to a press release issued Monday by the U.S. Attorney's Office in Los Angeles, a California federal district judge has sentenced Grand Rabbi Naftali Tzi Weisz, the Brooklyn, New York, Grand Rabbi of Spinka, to two years in prison for orchestrating a money-laundering tax evasion scheme. Weisz plead guilty last summer to a criminal conspiracy charge (see prior posting), admitting to a scheme in which several of his charitable organizations solicited donations with secret promises to refund large percentages of the donations back to donors who deducted the entire amounts on their tax returns. A pre-sentence report concluded that this practice among certain Hasidic sects has resulted in hundreds of millions of dollars of unreported income. The final defendant in the case, Yaacov Zeivald, was sentenced to 4 months in prison for his part in the fraud. Five others have already been convicted and sentenced in the scheme.

Full post as published by Religion Clause on December 25, 2009 (boomark / email).